Dear Shareholders,
 
 As we celebrated 40 sparkling years of our eventful journey last year,
 we were also aware of the challenging times lying ahead of us. Events
 like the Greek repayment crisis that almost lead to the collapse of the
 Euro, the Japanese earthquake in March followed by a devastating
 tsunami, and S & P''s downgrade of US debt outlook from stable to
 negative in April had a profound effect on the global economy
 
 We are interconnected and interdependent like never before. Today,
 there is no country or corporate that is insulated from the problems
 and fallouts of these global issues. And as we scan the horizon, we can
 stiii see some rough waters that need to be navigated and crossed
 before we emerge into calm seas.
 
 Against this background, the diamond industry went through what can be
 termed as turbulent times. On the one hand there was a marked increase
 in global retail demand as compared to the previous year. On the other
 hand, the industry faced tremendous price volatility. Rough prices
 remained high for the first eight months of year, followed by an abrupt
 fall in the last four months. This affected prices of polished diamonds
 too, leading to a high degree of uncertainty in the market. Many
 manufacturers preferred to hold on to their stocks. This had a direct
 affect on sales and margins.
 
 In line with the industry, the Company also had a mixed year. Under
 challenging circumstances, the Company was successful in increasing its
 total consolidated income by 9% from Rs. 1,667 crores in the previous
 year to Rs. 1,825 crores in the current year. In spite of increase in
 total income, margins continued to remain under pressure throughout the
 year, particularly due to increase in prices of rough diamonds. The PAT
 for this year marginally declined to 2.1% as compared to 2.3% in the
 previous year.
 
 The big upside came from the jewellery manufacturing business of the
 Company, which grew by a staggering 57% over the previous year to Rs.
 306 crores. This growth is clearly attributable to the Company''s vision
 to expand its presence in the emerging high-growth Asian markets of
 India and China. The Company had foreseen this opportunity a few years
 ago, and had adequately prepared itself by expanding its production
 capacity and presence in these geographies. The Company is today well
 established in these markets, and is poised to reap the benefits as
 consumer demand in these countries keeps growing on the back of strong
 economic growth.
 
 Looking forward, we continue to build our strengths at all points in
 the value-chain as we strive to work towards lasting significance. The
 Company is planning 50% capacity expansion of its cutting and polishing
 operation to enhance output. This will help the Company to gradually
 reduce the small portion of this activity that is currently being
 outsourced and thus maintain stricter control over output in terms of
 quality and yield. This enhancement will also prove significant in
 increasing its share in proprietary cuts and certified diamonds, a
 high-margin and growing portfolio for the Company.
 
 As far as our markets are concerned, despite current dip in its
 market-share, the US continues to remain the single largest diamond
 jewellery retail market in the world. The Company has been present in
 the US for many years and is today well established in this market.
 South-East Asia is fast emerging as the new growth region for the
 industry. Countries like China and India are witnessing high growth in
 demand on the back of surging economic growth and consumer spending.
 The Company is well placed in these key markets. To further expand its
 market base, the Company is keenly looking at emerging markets in
 countries like Russia, Turkey and South Africa. Although these have 
 been traditionally gold markets, they have a huge potential to shift to
 diamond jewellery.
 
 The overall situation continues to remain challenging. As we continue
 to meet these challenges head-on by becoming more effective and
 efficient, we also realize that these are merely business cycles. And
 like in all business cycles, there are ups and downs, peaks and
 troughs. As we navigate rough waters and steer hard, what we continue
 to be and remain is significant. Be it our customers or our employees
 or community and society, at Asian Star, we have never allowed the
 flows and ebbs of success to affect our significance to them.  Our
 values are as flawless as our diamonds; our trust is as lasting as our
 diamonds; and our resolve as resilient as our diamonds.
 
 We are confident of tomorrow. And as we sail further to a prosperous
 and promising future, we assure you that we aspire not only for
 success, but for the significance of success!
 
 Thank You.
 
 Best Regards,
 
 Vi pul P. Shah
 
 CEO & Managing Director